Which of the following plans offers contributions that are typically 100% tax deductible?

The plan that offers contributions that are typically 100% tax deductible is the SEP IRA. A Simplified Employee Pension (SEP) IRA is primarily designed for self-employed individuals and small business owners. Contributions made to a SEP IRA are tax-deductible in the year they are made, which can significantly reduce the taxable income for the individual or business contributing to the plan. This tax deduction is one of the key advantages of using a SEP IRA as a retirement savings vehicle.

While other account options may also offer some tax benefits, they come with different rules or limits regarding tax deductibility. For instance, contributions to a Traditional IRA can be fully deductible based on certain income thresholds and whether the individual or their spouse is covered by another retirement plan. Roth IRAs, on the other hand, involve contributions made with after-tax dollars, meaning that contributions are not tax-deductible. Pension plans are often employer-sponsored and may have different structures in terms of tax deductibility based on the specific type of pension plan.

In summary, the SEP IRA allows for 100% tax-deductible contributions, making it an attractive option for those eligible, particularly in a self-employment or small business context.